Highlights
- China has imposed immediate export restrictions on critical minerals like tungsten, tellurium, and indium.
- These restrictions significantly impact global thin-film solar production.
- The export controls are a strategic economic move targeting U.S. and European solar industries.
- This action is in response to ongoing trade tensions and technological competition.
- Western governments face a critical challenge in developing domestic critical mineral strategies.
- There is a risk of long-term dependence on China's industrial supply chains if strategies are not developed.
China has imposed strict new export controls on critical minerals vital to the thin-film solar industry, including tungsten, tellurium, bismuth, molybdenum, and indium. The restrictions, which are immediately enforced, require exporters to obtain special approvals under China’s Export Control Law and Foreign Trade Law.
The move will have major global implications, especially for thin-film photovoltaic (PV) production, given China’s dominance in tellurium refining. The most affected company? First Solar, the U.S.-based leader in cadmium telluride (CdTe) solar modules, which now faces potential material shortages and price hikes.
The topic was recently covered by Vincent Shaw, who was writing for PV Magazine (opens in a new tab).
Accuracy Matters
The article does a solid job of explaining China’s overwhelming dominance in the tellurium supply chain—producing over 76% of global refined tellurium in 2024 and exporting 1,200 tons of CdTe materials in 2023, which supported roughly 12 GW of thin-film solar production. It correctly identifies that China’s policy shift will squeeze global thin-film solar producers, particularly U.S. and European companies that depend on these materials for next-generation solar technology.
Missing the Mark
However, the article largely ignores the broader geopolitical and economic motivations behind China’s move. This is not just about national security or resource conservation—it is economic warfare, plain and simple. As Rare Earth Exchanges has chronicled, China is on a mission for superpower recognition, with a three-phased plan culminating in the oversight of a global digital currency by 2049.
China is responding to escalating U.S. trade restrictions and sanctions on Chinese tech sectors, including semiconductors and EVs. By weaponizing critical mineral exports, China is putting pressure on U.S. and European solar industries—many of which are already struggling with tariffs and supply chain disruptions.
Furthermore, the article overlooks China’s long-term strategy:
- Forcing the U.S. and EU to seek alternative (likely costlier) sources—which could delay solar deployment and increase costs.
- Securing more market dominance—by making Chinese thin-film solar companies more competitive since they will still have access to these minerals while foreign rivals scramble for new suppliers.
- Testing Western resolve—China wants to see how aggressively the Biden administration or future U.S. leadership will respond.
The Bigger Question: Will the U.S. and EU Finally Take Critical Minerals Seriously?
This should be a wake-up call for Western governments, especially the U.S., which has lagged behind in building a resilient critical minerals strategy. If the U.S. fails to invest in domestic mining, processing, and refining of tellurium, indium, and other key solar materials, then China’s ability to dictate supply chains will only strengthen.
Rare Earth Exchanges Takeaway
China’s export restrictions are not just routine trade policy—they are strategic moves in an ongoing economic chess game. The real issue is not just how this impacts First Solar or thin-film PV manufacturers today but how the West will respond to China’s tightening grip on critical minerals in the long run. If the U.S. and its allies do not aggressively secure their own supplies, they will find themselves permanently dependent on Beijing’s industrial strategy—whether in solar, batteries or beyond.
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